St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-12-07
President Cleveland Sends His
Annual Message to the
House and Senate.
A Clear and Foreible State
ment Made Of the Present
Financial Relations.
The Treasury Overlooking
With Money Which Should
Be in Circulation.
Evils in the Present Tariff
System A State Paper
Worth Reading.

WASHINGTON, Dec. 6.-The following
message was sent to congress to-day:
To the Congress of the United States:
You are confronted at the threshold of
your legislative duties with condition
of national finances which imperatively
demands immediate and careful cOnsid-
Grafton. The amount of money annu-
ally exacted, through the operation of
the present laws, from the industries Of
the people, largely exceeds the sum
necessary to meet the expenses of the
government.
When we consider that the theory of
our institutions guarantee TO every citi-
zen the full enjoyment of all the fruits
of his industry and enterprise, with
only such deduction as may be his share
towards the careful and economical
maintenance of the government which
protects him, it is plain that the eXac-
ton of more than this is indefenSible eX-
tortiOn. and a culpable betrayal of
American fairness and justice. This
wrong. reflected upon those who bear
the burden of national taxation, like
other wrongs. multiplieS a brood of evil
consequences. The public treasury,
which should only exist as conduit
conveying the peoples tribute to its
legitimate objects of expenditure, be-
comes
A BOARDING PLACE
for money needleSSly withdrawn from
trade and the peoples use, thus Grip
pIing our national energies, SuSpending
our eOuntry'S development. preventing
investment in productive enterprise.
threatening financial disturbance and
inviting schemes of public plunder.
This condition of our treasury is not
altogether new, and it has more than
once of late been submitted to the peo-
pies representatives in the congress,
who alone can apply remedy. And
yet the situation still continues, with
aggravated incidents. more than ever
preSaging financial cOnvulSiOn and
widespread disaster. 1t will not do to
neglect this situation because its dan
gers are not now plainly imminent and
apparent. They exist none the less GER
tainly, and await the unforeseen and
unexpected occasion when suddenly
they will be precipitated upon us. The
3Oth day of June, 1885, the excess of rev.
enue OVel public expenditures, after COM
plying with the annual requirements of
the sinking fund act. was Sl7.S59, 1854:
during the wear ended June 80, 1856.
such excess amounted to S49. .405, $500;
and during the year ended June 30,
1887, it reached the sum of S55,567, ,S49.54.
The annual contributions to the sinking
fund during the three years above Specl-
fed, amounting in the aggregate to
Sl3S, ,05S, ,320.94, and deducted from the
surplus as stated, were made by calling
in for that purpose outstanding B per
cent bonds of the government. During
the six months prior to June 30, 1887, the
surplus revenue had grown so large by
repeated accumulatiOnS. and it was
feared the withdrawal of this great sum
of money needed by the people would
so affect the business of the country,
that the sum of 1854, 100 of such sur
plus was applied to the payment of the
principal and interest of the per cent
bonds still outstanding and which were
then payable at the option of the gov
ernment.
THE PRECARIOUS CONDITION
of financial affairs among the people
still needing relief, Immediately after
the 30th day of June, 1887, the remainder
of the 8 per cent bonds then OutStand-
ing. amounting with principal and in
terest to the sum of SlS,S77, 800, were
called in and applied TO the sinking fund
contribution for the current fiscal year.
Notwithstanding these operations of
the treasury department representa-
tiOnS of distress in business circles not
only continued but increased, and alb
Solute peril seemed at hand. III these
circumstances the contribution to the
sinking fund for the current fiscal year
was at once completed by the eXDendit-
ture of 81, ,6S4, 2S3.55 in the purchase of
government bonds not yet due bearing
and AZ per cent interest, the premium
paid thereon averaging about "a per
cent for the former and s per cent
for the latter. In addition to
this the interest accruing during
the current year upon the outstanding
bonded Indebtedness of the government
was to some extent anticipated, and
banks selected as repositories of pub
lie money were permitted to somewhat
increase their deposits. While the eX-
pedientS thus employed to release to
the people the money lying idle in the
treasury served to avert Immediate DAN
ger, our surplus revenues have con-
tinued to accumulate, the excess for the
present year amounting the lst day
of December to $50, ,25S, 701.19, and eSti-
mated to reach the sum of S113, ,000.000
the 30th of June next, at which date il
is expected that this sum, added to
prior 3ccumulations, will swell the sur
plus in the treasury to S140,000,0O0.
There seems to be no assurance that,
with such a withdrawal from use of the
peoples circulating medium, our buSi-
future be subjected to
THE SAME DISTRESS
which was quite lately produced from
the same cause. And while the func-
tions of our national treasury should be
few and simple, and while its best con-
ditiOn would be reached, l believe, by
its entire diScOnnectiOn with private
business interests, yet when, by per-
version of its purposes, it idly holds
money useleSsly Subtracted FROM the
channels of trade, there seems to be rea-
son for the claim that some legitimate
means should be devised by the govern
ment to restore i'll an emergency, with
out waste or extravaganza, such money
TO its place among the people. If such
an emergency arises there now exists
no clear and undoubted executive
power of relief. Heretofore the re-
demptiOn of per cent bonds. which
were payable at the option of the GOV
ernment has afforded means for the
disbursement of the excess of our reve-
nues; but these bonds have all been re-
tired, and there are no bonds OutStand-
ing the payment of which we have the
right TO insist upon. The contribution
to the sinking fund which fur
nishes the occasion for expendi-
lures in the purchase of bonds
has been already made for the current
year, 50 that there is no outlet in
that direction. In the present state of
legislation the only pretense of any eX-
iSting eXpcufiVa mower To restore at this